Circle Launches Native USDC on Sonic Labs, Completes $500M Transition

Circle, the stablecoin issuing company, has completed the transition to native USDC on Sonic Labs, an Ethereum Virtual Machine (EVM) layer-1 blockchain. The latest move replaces the existing $500 million in bridged USDC.

According to an official tweet, the company revealed that the upgrade is seamless. It automatically converts all tokens without requiring action from users or developers. This development preserves full access to liquidity and ensures continued compatibility across the Sonic ecosystem.

Circle Customers Minting USDC

In addition to the announcement, the native delivers a smoother experience with improved stability and regulatory alignment for Sonic. The smart contract address is unchanged, and all existing integrations are maintained. The token name will be updated from USDC.e to USDC shortly.

While the native USDC is regulated and fully reserved, Circle customers can mint and redeem USDC 1:1 directly from the stablecoin issuing company, providing a reliable foundation for trading, payments, and financial services.

According to the latest development, Circle rolled out CCTP V2 and native USDC support to optimize cross-chain interoperability. It also introduced Hooks, a new feature that helps take care of tasks after a transfer. This way, users don’t have to do them manually. These advancements streamline user experiences and facilitate seamless on-chain workflows.

Notably, CCTP V2 enhances the DeFi ecosystem by enabling rapid USDC transfers across 20 supported blockchains. This advancement increases flexibility and efficiency for both users and developers. Integration has been simplified through improved documentation, making application adoption seamless.

Connecting Different Blockchains

As such, with native USDC and CCTP live on Sonic, there are many new possibilities, whether in finance, online payments, or tools connecting different blockchains. On day one, platforms like Aave, Binance, and RedotPay are already using USDC to power their services in several ways.

Moreover, RedotPay aims to enhance users’ real-world utility and commercial tools by expanding its USDC-linked payment cards and remittance services through an upgraded system. Concurrently, platforms such as Socket will leverage CCTP for seamless cross-chain liquidity.

Meanwhile, on the development part, native USDC is available on Sonic, with Circle Mint enabling direct fiat access for verified businesses. Smaller teams and individuals can leverage Circle’s partner network for USDC integration.

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